I recently got my home theater set up just the way I want it. It consists of my PS3, 46” Sony XBR3, Sony STR-DA5200 ES and a full 7.1 JBL Cinema Sound Surround Sound. It’s killer.
Now to my issue: I first switched to HDMI video (PS3 to TV) and it worked just fine. Then I added the receiver and that worked fine, but no little blue light on the receiver. I can change sound fields, i.e. hall, stadium, DD Pro Logic II, IIx, etc. Added my speakers, a-o-k, no little blue light, but sound from all 7.1 channels with music and movie playback, plus I can change sound fields. (Note: little blue light is on when cable TV is on HD content and I can change sound fields.) I went into settings on PS3 and set up audio for HDMI. Little blue light is on! Yippee! :) But wait, on start up of PS3 and movie playback, center channel has terrible static, and on music playback on 2 channels, plus I can’t change sound fields now. Aaaarrrrgghhhhh! :mad: I spent two frustrating weeks with Sony customer support, PS3 and receiver. Conclusion: receiver support blames PS3, PS3 support blames receiver. At on time they say they are incompatible with one another.
Finally, spent $100/hr for one hour with local home theater company to run optical audio to receiver from PS3. Found out later optical wont carry 7.1. Grrrrr! Now little blue light is on with no static on start up and movie playback and can change sound fields with music playback too.
Hope anybody who reads this can follow along and understands, because here is my question. Is HDMI 1.3 so protected that users can’t manipulate how they want to hear it, or do I need to trade in my PS3 for a new one? Is it the HDMI connection on the PS3 that is bad?
HELP!!!

The optical output from a PS3 will carry only PCM2.0, Dolby Digital 5.1 and DTS 5.1 audio - i.e. the same legacy audio standards as DVD.

You have to use HDMI as your audio connection to fully exploit the 5.1 PCM uncompressed tracks, and the newer versions of DD and DTS used by BluRay disc releases. Of course some amps will take a standard, DVD quality, DD5.1 or DTS5.1 signal via optical and decode it and process it to 7.1 - but this isn't the same thing.

This is more a limitation of the optical and coax digital connection standards (that max out at approx 1.5Mbs - the data rate required for a 2.0 16bit stereo 48KHz audio signal) than a restriction introduced by HDMI, which can carry a much higher bandwith audio signal.

This means that for the highest quality audio you need to feed your amplifier/receiver via HDMI not optical - but note that not all amps with HDMI inputs accept the audio - some just switch the HDMI signals without touching them.

I've heard nothing about the HDMI output from the PS3 being bad - did you have problems when you originally used an HDMI interconnection ?